Musings on economics and politics, with a special interest in free banking and monetary disequilibrium.

Monday, March 18, 2013

Micro vs. Macro

I sometimes have the impression that microeconomists smugly look down upon macroeconomists. Microeconomics is scientific and empirical. Macroeconomics is a mess of conflicting theories that apparently cannot be distinguished empirically.

But then...

What about the debate regarding the minimum wage?

As soon as microeconomics becomes politically relevant and controversial, suddenly the basic model (supply and demand) is subject to dispute and the empirical evidence becomes doubtful.